GST impact on octroi check posts: The Goods and Service Tax (GST) that was rolled out on July 1 by the Narendra Modi government has left octroi check posts empty. A toll plaza operator Sunil Kumar at the Delhi Noida Direct Flyway (DND) told the Indian Express that trucks entering Delhi have dropped by about a resounding 40 pct. Now only 5-6 lakh trucks enter the state in a day than the earlier number was 8-9 lakh. The toll plaza at DND does not charge octroi but still takes toll tax and green tax for the Municipal Corporation of Delhi (MCD). Whereas the Gurgaon-Faridabad and Kherki Daula toll plazas charge the same taxes before GST came into force. Tax collection and flow of trucks has been different across different states, according to the Indian Express. Karnataka, Kerala, Jharkhand and Chattisgarh saw a free movement of trucks through toll plazas. Karnataka’s commercial tax commissioner Ritvik Pandey in a notification said that all checkpoints will be closed so that businesses can continue without any obstacles and transportation of goods is done in a smooth manner.
In Jharkhand, an official told the Indian Express that the losses incurred by closing 10 border checkpoints would be compensated by the GST framework. A relative slowdown was seen at checkpoints in Uttarakhand, Jammu & Kashmir, West Bengal, Punjab, Chandigarh, Himachal Pradesh and Delhi. In Uttarakhand, traders haven’t yet got themselves registered under the new tax reform despite counselling and training, Pithoragarh district magistrate C Ravishankar told the Indian Express. A deadline has been given to such traders. Jammu Chamber of Commerce and Industry president Rakesh Gupta told the paper that gateway from J&K to Punjab was deserted after GST implementation.
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He said that if such a situation persists then there would be a shortage of many essential commodities including life-saving drugs. On the contrary, Gurgaon is seeing the business flow as usual despite not changing any rates in the toll plazas after GST. A Reliance Infrastructure Ltd official, which handles the Gurgaon-Faridabad plaza, told the Indian Express, “We have not made any alterations from our side after GST came into effect, and the daily average of vehicles crossing the border is as usual.” The Kherki Daula toll plaza has seen a dip in the number of trucks but they have also not changed the prices.